Scotiabank is forecasting only slight economic expansion over the remainder of 2012 and again next year. It predicts just 1.9 per cent average growth this year, and 1.8 in 2013.

This is expected to result in lower job creation and continued low interest rates through till 2014.

The predictions of Scotiabank economists Derek Holt and Dov Zigler are well below those put forward by the Bank of Canada, which is calling for 2.1 and 2.3 per cent growth in 2012 and 2013. They follow less than glowing reports from the Conference Board of Canada that the labour market has stalled, and from Statistics Canada saying gross domestic product performance in the month of May only increased 0.1 per cent.

If it's any consolation, Scotiabank is similarly predicting most developed countries will be in the same boat. The only notable exceptions are China, India and Indonesia.